NY State Senate Bill 2019-S3596

Senate Bill S3596

2019-2020 Legislative Session

Provides that credits for excess electricity generated by customer-generators subject to net energy metering may be carried over and used to offset electricity used

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to energy and telecommunications
Feb 11, 2019	referred to energy and telecommunications

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2019-S3596 (ACTIVE) - Details

See Assembly Version of this Bill:: A4639
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §§66-j & 66-l, Pub Serv L; amd §1020-g, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A10244
2011-2012: S5839, A5521
2013-2014: S2957, A5822
2015-2016: S2878, A3096
2017-2018: S2696, A5527
2021-2022: S3140, A5530
2023-2024: S4304

2019-S3596 (ACTIVE) - Summary

Provides that credits for excess electricity generated by customer-generators subject to net energy metering by an electric corporation or the Long Island power authority may be carried over indefinitely and used against any charges imposed by an electric corporation or the Long Island power authority when the customer-generator uses more electricity than such customer generates; provides for the accounting of credits once every 5 years and the electric corporation or Long Island power authority shall reimburse the customer-generator for the accumulated credits.

2019-S3596 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3596

SPONSOR: PARKER
 
TITLE OF BILL:  An act to amend the public service law and the public
authorities law, in relation to credit for electricity generated by a
customer-generator subject to net energy metering

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide that credits for excess electricity generated by customer-
generators subject to net metering may be carried over and used to
offset electricity used.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends subdivision 4 of section 66-j of the Public Service
Law, as amended by Chapter 355 of the laws of 2009.

Section 2 amends subdivision 4 of section 66-1 of the Public Service
Law, as amended by Chapter 721 of the laws of 2006, paragraphs (b) and
(e) as amended and paragraph (d) as added by Chapter 483 of the laws of

2003.

 
JUSTIFICATION:

New York State's net metering law allows a utility customer with an
on-site electric generating system using solar or wind to send any
excess power that they Generate back to the utility arid, receiving an
equal credit against,their own usage. Customers are credited for the
excess energy they produce at the retail rate, and the credits can be
rolled over from month to month for a year. If there is excess electric-
ity generated by the customer generator at the end of the annualized
period of service, the utility pays for this-electricity at the avoided
cost rate. Avoided cost is the cost the utility would have incurred for
producing the same amount of power at a rate lower than the retail rate.

Under this legislation, net-metered customer-generators can choose the
option to carryover the credits that come from their producing energy in
excess of what they use and have that credit aggregated indefinitely so
as to be used as credit against times when they use more energy than
they produce. In cases where customer-generators elect to carryover
credits indefinitely, they will be entitled to an accounting of those
credits every five years.

Net-metered customer generators do not produce excess energy for profit.
The electricity that the net-metered customer generators put into the
grid roughly equals what that customer uses during the periods when they
must use electricity from the grid. It is logical and reasonable to
allow the option of carryover of excess electricity credit longer than a
12 month period so that a customer-generator may take advantage of using
their credits priced at the retail rate. This is significant because the
periods of time that the sun may shine and wind may blow are not the
same from year to year, leaving a customer generator to either make more
or less energy then use in anyone, year. By giving the customer-genera-
tor the opportunity to carryover credits over a period of time longer
than a year, the customer generator will be better able to take advan-
tage of the natural year to year fluctuations of the sun and wind. New
York's interconnection and net metering rules are designed to motivate
ratepayers to invest in renewable energy sources on their properties by
ensuring that customer generators are compensated for the energy they
produce. By providing reasonable and appropriate benefits for customers,
New York can incentivize customer-gener ators to contribute to the
availability of safe, reliable, and affordable electricity and help
protect our environment in New York and reduce our dependence on foreign
fuel sources.

 
PRIOR LEGISLATIVE HISTORY:

2017/18 S2696 - Referred to Energy and Telecom
2015-16: S.2878/A.3096 - Referred to Energy and Telecomm/ Passes Assem-
bly
2013-14: S.2957/A.5822 - Referred to Energy and Telecomm/ Passed Assem-
bly
2011-12: S.5839/A.5521 - Referred to Energy and Telecomm/ Passed Assem-
bly
2009-10 A.10244A - Reported Referred to Rules

 
FISCAL IMPLICATIONS:

No fiscal implications.

 
EFFECTIVE DATE:
This act shall take effect on the first day of January next succeeding
the date on which it shall have become a law.

2019-S3596 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3596
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2019
                                ___________
 
 Introduced  by Sens. PARKER, BOYLE, MONTGOMERY -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Energy
   and Telecommunications
 
 AN  ACT  to amend the public service law and the public authorities law,
   in relation to credit for electricity generated by a  customer-genera-
   tor subject to net energy metering

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 4 of section 66-j of the public service law, as
 amended by chapter 355 of the laws of 2009, paragraphs (b)  and  (c)  as
 amended  by  chapter  494  of  the  laws  of 2014, is amended to read as
 follows:
   4. Rates. An electric corporation shall use  net  energy  metering  to
 measure  and  charge for the net electricity supplied by the corporation
 and provided to the corporation by a  customer-generator,  according  to
 these requirements:
   (a) In the event that the amount of electricity supplied by the corpo-
 ration  during  the  billing  period  exceeds  the amount of electricity
 provided by a customer-generator, the corporation shall,  AFTER  DEDUCT-
 ING,  FROM  THE AGGREGATE OF UNUSED CREDIT FOR EXCESS ELECTRICITY GENER-
 ATED BY SUCH CUSTOMER-GENERATOR PRIOR TO SUCH BILLING PERIOD, AN  AMOUNT
 OF  CREDIT  EQUAL  TO THE AMOUNT OF ELECTRICITY SUPPLIED BY THE ELECTRIC
 CORPORATION, TO THE EXTENT SUCH CREDIT EXISTS, AND MAY THEREAFTER charge
 the customer-generator for the net electricity supplied, AFTER DEDUCTION
 OF SUCH CREDITS, at the  same  rate  per  kilowatt  hour  applicable  to
 service  provided  to other customers in the same service class which do
 not generate electricity onsite.
   (b) In the event that the amount of electricity produced by a  custom-
 er-generator during the billing period exceeds the amount of electricity
 used by the customer-generator, the corporation shall (I) apply a credit
 to the next bill for service to the customer-generator for the net elec-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08646-01-9

 S. 3596                             2
 
 tricity  provided  at  the  same  rate  per  kilowatt hour applicable to
 service provided to other customers in the same service class  which  do
 not  generate electricity onsite, OR (II) AT THE OPTION OF THE CUSTOMER-
 GENERATOR,  CREDIT  SUCH  CUSTOMER-GENERATOR  WITH  THE AMOUNT OF EXCESS
 KILOWATT HOURS GENERATED IN EXCESS OF ITS USE, AND SUCH CREDIT SHALL  BE
 AGGREGATED  INDEFINITELY  TO  BE USED AS CREDIT AGAINST CHARGES INCURRED
 PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION; except for micro-combined
 heat and power or fuel cell customer-generators or farm waste generating
 equipment customer-generators as described in subparagraph (ix) of para-
 graph (a) of subdivision one of this section, who will  be  credited  at
 the  corporation's  avoided  costs.  The avoided cost credit provided to
 micro-combined heat and power or fuel cell customer-generators  or  farm
 waste  generating equipment customer-generators as described in subpara-
 graph (ix) of paragraph (a) of subdivision one of this section shall  be
 treated  for  ratemaking  purposes  as  a purchase of electricity in the
 market that is includable in commodity costs.
   (c) At the end of the year or annualized over the period that  service
 is  supplied  by means of net energy metering, the corporation shall (I)
 promptly issue payment at its avoided cost to the customer-generator, as
 defined in subparagraph (i), (ii), (IV), (V) or (ix) of paragraph (a) of
 subdivision one of this section, for the value of any  remaining  credit
 for  the excess electricity produced during the year or over the annual-
 ized period by the customer-generator, OR (II)  AT  THE  OPTION  OF  THE
 CUSTOMER-GENERATOR,  SHALL  CONTINUE  TO  AGGREGATE SUCH CREDITS, AT THE
 SAME RATE PER KILOWATT HOUR APPLICABLE TO THE SERVICE PROVIDED TO  OTHER
 CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON
 SITE, FOR AN INDEFINITE PERIOD OF TIME AND CONTINUE TO ALLOW USE OF SUCH
 CREDIT TO OFFSET ANY LIABILITY OF THE CUSTOMER-GENERATOR TO THE ELECTRIC
 CORPORATION DURING BILLING PERIODS IN WHICH THE ELECTRICITY GENERATED BY
 THE CUSTOMER-GENERATOR IS LESS THAN THAT USED BY SUCH CUSTOMER.
   (d)  In  the event that the corporation imposes charges based on kilo-
 watt demand on customers who are  in  the  same  service  class  as  the
 customer-generator  but  which  do not generate electricity on site, the
 corporation may impose the same charges at the same rates to the custom-
 er-generator, provided, however,  that  the  kilowatt  demand  for  such
 demand  charges  is  determined  by the maximum measured kilowatt demand
 actually supplied by the corporation to  the  customer-generator  during
 the billing period.
   (E)  IN THE EVENT THAT A CUSTOMER-GENERATOR ELECTS TO ALLOW THE AGGRE-
 GATION OF ANY CREDITS FOR EXCESS ELECTRICITY  GENERATED,  THE  CUSTOMER-
 GENERATOR  SHALL BE ENTITLED TO AN ACCOUNTING OF SUCH CREDITS ONCE EVERY
 FIVE YEARS AND UPON SUCH  ACCOUNTING,  THE  ELECTRIC  CORPORATION  SHALL
 PROMPTLY  ISSUE  PAYMENT AT ITS AVOIDED COST TO SUCH CUSTOMER-GENERATOR,
 AS DEFINED IN SUBPARAGRAPH (I), (II), (IV) OR (V) OF  PARAGRAPH  (A)  OF
 SUBDIVISION  ONE  OF THIS SECTION, FOR THE VALUE OF ANY REMAINING CREDIT
 FOR THE EXCESS ELECTRICITY PRODUCED BY THE CUSTOMER-GENERATOR.
   § 2. Subdivision 4 of section 66-l  of  the  public  service  law,  as
 amended  by  chapter  721 of the laws of 2006, paragraphs (b) and (c) as
 amended and paragraph (d) as added by chapter 483 of the laws  of  2008,
 is amended to read as follows:
   4.  Rates.  An  electric  corporation shall use net energy metering to
 measure and charge for the net electricity supplied by  the  corporation
 and  provided  to  the corporation by a customer-generator, according to
 the following requirements:
   (a) In the event that the amount of electricity supplied by the corpo-
 ration during the billing  period  exceeds  the  amount  of  electricity

 S. 3596                             3
 
 provided  by  a customer-generator, the corporation shall, AFTER DEDUCT-
 ING, FROM THE AGGREGATE OF UNUSED CREDIT FOR EXCESS  ELECTRICITY  GENER-
 ATED  BY SUCH CUSTOMER-GENERATOR PRIOR TO SUCH BILLING PERIOD, AN AMOUNT
 OF  CREDIT  EQUAL  TO THE AMOUNT OF ELECTRICITY SUPPLIED BY THE ELECTRIC
 CORPORATION, TO THE EXTENT SUCH CREDIT EXISTS, AND MAY THEREAFTER charge
 the customer-generator for the net electricity supplied, AFTER DEDUCTION
 OF SUCH CREDITS, at the  same  rate  per  kilowatt  hour  applicable  to
 service  provided  to other customers in the same service class which do
 not generate electricity on site.
   (b) In the event that the amount of electricity produced by a  custom-
 er-generator during the billing period exceeds the amount of electricity
 used by the customer-generator, the corporation shall (I) apply a credit
 to the next bill for service to the customer-generator for the net elec-
 tricity  provided  at  the  same  rate  per  kilowatt hour applicable to
 service provided to other customers in the same service class  which  do
 not  generate  electricity on site, OR (II) AT THE OPTION OF THE CUSTOM-
 ER-GENERATOR, CREDIT SUCH CUSTOMER-GENERATOR WITH THE AMOUNT  OF  EXCESS
 KILOWATT  HOURS GENERATED IN EXCESS OF ITS USE, AND SUCH CREDIT SHALL BE
 AGGREGATED INDEFINITELY TO BE USED AS CREDIT  AGAINST  CHARGES  INCURRED
 PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
   (c)  At the end of the year or annualized over the period that service
 is supplied by means of net energy metering, the corporation  shall  (I)
 promptly  issue  payment  at  its  avoided cost to a residential or farm
 service customer-generator for the value of any remaining credit for the
 excess electricity produced during the year or over the annualized peri-
 od by such customer-generator, OR (II) AT THE OPTION  OF  THE  CUSTOMER-
 GENERATOR,  SHALL  CONTINUE  TO AGGREGATE SUCH CREDITS, AT THE SAME RATE
 PER KILOWATT HOUR APPLICABLE TO THE SERVICE PROVIDED TO OTHER  CUSTOMERS
 IN THE SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON SITE, FOR
 AN  INDEFINITE  PERIOD OF TIME, AND CONTINUE TO ALLOW USE OF SUCH CREDIT
 TO OFFSET ANY LIABILITY OF THE CUSTOMER-GENERATOR TO THE ELECTRIC CORPO-
 RATION DURING BILLING PERIODS IN WHICH THE ELECTRICITY GENERATED BY  THE
 CUSTOMER-GENERATOR IS LESS THAN THAT USED BY SUCH CUSTOMER.
   (d)  In  the event that the corporation imposes charges based on kilo-
 watt demand on customers who are  in  the  same  service  class  as  the
 customer-generator  but  which  do not generate electricity on site, the
 corporation may impose the same charges at the same rates to the custom-
 er-generator, provided, however,  that  the  kilowatt  demand  for  such
 demand  charges  is  determined  by the maximum measured kilowatt demand
 actually supplied by the corporation to  the  customer-generator  during
 the billing period.
   (E)  IN THE EVENT THAT A CUSTOMER-GENERATOR ELECTS TO ALLOW THE AGGRE-
 GATION OF ANY CREDITS FOR EXCESS ELECTRICITY  GENERATED,  THE  CUSTOMER-
 GENERATOR  SHALL BE ENTITLED TO AN ACCOUNTING OF SUCH CREDITS ONCE EVERY
 FIVE YEARS AND UPON SUCH  ACCOUNTING,  THE  ELECTRIC  CORPORATION  SHALL
 PROMPTLY  ISSUE  PAYMENT  AT ITS AVOIDED COST TO SUCH CUSTOMER-GENERATOR
 FOR THE VALUE  OF  ANY  REMAINING  CREDIT  FOR  THE  EXCESS  ELECTRICITY
 PRODUCED BY THE CUSTOMER-GENERATOR.
   §  3. Subdivision (h) of section 1020-g of the public authorities law,
 as amended by chapter 546 of the laws of 2011, is  amended  to  read  as
 follows:
   (h)  To  implement  programs  and policies designed to provide for the
 interconnection of: (i) (A) solar electric generating equipment owned or
 operated by residential customers, (B) farm  waste  electric  generating
 equipment  owned  or operated by customer-generators, (C) solar electric
 generating equipment owned or operated by non-residential customers, (D)

 S. 3596                             4
 
 micro-combined heat and power  generating  equipment  owned,  leased  or
 operated  by  residential  customers,  (E) fuel cell electric generating
 equipment owned, leased or operated by residential  customers,  and  (F)
 micro-hydroelectric  generating  equipment  owned, leased or operated by
 customer-generators and for net energy metering consistent with  section
 sixty-six-j  of  the  public  service law, to increase the efficiency of
 energy end use, to shift demand from periods of high demand  to  periods
 of  low  demand  and  to facilitate the development of cogeneration; and
 (ii) wind electric generating equipment owned or operated  by  customer-
 generators  and  for  net energy metering consistent with section sixty-
 six-l of the public  service  law.  NOTWITHSTANDING  THE  PROVISIONS  OF
 SECTION ONE THOUSAND TWENTY-S OF THIS TITLE, AS AMENDED BY CHAPTER THREE
 HUNDRED  EIGHTY-EIGHT OF THE LAWS OF TWO THOUSAND ELEVEN, THE AUTHORITY,
 IN ITS IMPLEMENTATION OF SUCH PROGRAMS AND POLICIES, SHALL BE SUBJECT TO
 THE PROVISIONS OF SUBDIVISION FOUR OF SECTION SIXTY-SIX-J  AND  SUBDIVI-
 SION FOUR OF SECTION SIXTY-SIX-L OF THE PUBLIC SERVICE LAW;
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.

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Senate Bill S3596

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Sponsored By

Kevin S. Parker